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In: Accounting

No Copy Paste, No Handwritten Here are the 2 questions. Pl, solve these using the data...

No Copy Paste, No Handwritten

Here are the 2 questions. Pl, solve these using the data given below. The explanation should be very clear and each step has to be shown.


Operating costs (excl. depreciations & amortization): $4.5m
Depreciation and amortization: $1.5m
Interest: $0.7m
Net Income: $2.8m
Tax Rate: 35%

1 Find out the EBITDA

2 calculate the sales level which would give a net income of $4.2million for the following year, given that operating costs (given above) will get enhanced by 7.5%. The tax rate is given 35%.

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